PG&E Permitted Under Backstop to Issue up to $14B of New Shares

PG&E Corporation entered into additional backstop commitment letters which provides that debtors will be permitted to issue new shares of PG&E Corporation for up to $14 billion of proceeds to finance proposed reorganization plan.

• Issuance to be done through one or more equity offerings that, under certain circumstances, must include a rights offering
• Initial commitment premium for the backstop commitments is 0.75% of the amount of the commitments
  • It expires on Jan. 20, 2020, extendable toApril 30, 2020 for an additional commitment premium of 1.25% , to June 30, 2020 for an additional premium of 2.5% and to Aug. 29, ...